LD SBI 2 LAST (BCM33)

Bhattacharya said such an approach will be more Bhattacharya said such an approach will be more acceptable to both the lenders and the borrowers in cases where the promoters are not able to infuse funds and lenders are reluctant to take additional exposure. SBI said at a later stage the joint venture may seek participation from other lenders in the identified assets. "This is a great opportunity for us to continue to invest in the long-term India story, and were pleased to be further expanding our private equity platform here," Brookfield India head Anuj Ranjan said. This March, Kotak Mahindra Group tied up with the Canadian Pension Plan Investment Board (CPPIB) to launch a USD 525 million fund to invest in the stressed assets. The CPPIB has committed USD 450 million and the Kotak Group USD 75 million. The Reserve Bank last December conducted an asset quality review (AQR) which covered 36 banks (including all state-run banks) which accounted for 93 per cent of the gross advances. After the AQR, net NPAs in the banking system rose sharply to 7.6 per cent in March 2016 from 5.1 per cent in September 2015, while the total stressed loans including the restructured accounts crossed 13 per cent of the system or over Rs 8 trillion as of March 2016. In fiscal 2015-16, SBIs net profit declined 24 per cent to Rs 9,951 crore from Rs 13,102 crore in 2014-15. For the March 2016 quarter, SBIs net declined by 66.2 per cent to Rs 1,264 crore from Rs 3,742 crore due to higher provision for stressed assets. SBIs net non-performing assets stood at 3.81 per cent or Rs 55,807 crore as of March 2016, against 2.12 per cent (Rs 27,591 crore) a year ago, while its gross NPAs jumped to 6.5 per cent from 2.5 per cent a year ago. PTI HV BEN KRK MR BAS

This is unedited, unformatted feed from the Press Trust of India wire.

Do You Like This Story? Awesome! Now share the story Too bad. Tell us what you didn't like in the comments